I have a problem where a user is created using a template and dirsynced on creation. The problem I have is that the user is then created as "in cloud" rather than synced with the local active directory. This then creates synchronization issues when the dirsync actually activates. 

So what I currently have to do is this:

Create the new user

Go into the office 365 portal

delete the "in cloud" user

let dirsync run

assign license

What I would like to do (and from what I can tell is the intended function):

Create the user and then the portal assigns the license automatically

The current "user creation method" is selected to "Create in Office 365 (Dirsync Enabled)"

Is there something I might be missing?